One form of electronic cash is debit cards. Debit cards are plastic cards electronically connected to a checking account. Debit cards can serve as checks and as ATM cards.

When using a debit card as a check, the card is simply given to the clerk and it is then treated as a credit card. Debit cards can only be used at stores which accept credit cards. If there is not enough money in the account the card is linked to, the transaction will not be approved. This provides added security for the merchant over accepting a check. If the consumer chooses to use a debit card they will avoid the hassles of having to provide identification as when issuing a check. Coastal Mart allows customers to pay for their purchase at the pump by using a debit card or credit card. I myself have

One stipulation of using the CyberCoin service is that it can only be used at merchants who are set up for CyberCoin. This could become a problem if there are not many merchants who accept this service. Once I found a merchant and wanted to purchase something, I would be worried that I would not get the items. I was relieved to find through my reading that CyberCash assures the delivery of both payment and goods through the use of public and private key encryption. The funds will not be transferred until delivery of the goods has reached the consumer's computer through the encrypted key.

Stored value cards are another form of electronic cash. These cards have money in the form of credit stored electronically. Ellen Stark provided information that these cards either use a magnetic strip or a computer chip. My first encounter with such cards was here at WSU. I also found out that these cards are sold by public transit systems in New York City, San Francisco and other cities. The cards are then used by users of the transit system to pay for the fare. On campus the Shocker Card can be used for vending machines, laundry machines, dining services, and copy machines. The Shocker Card is also a debit card, ATM card and calling card. This is made possible by using different magnetic strips for each function.

It should be noted that although debit cards may be convenient and fast, they are not as safe as credit cards. To illustrate, if a credit card is lost or stolen federal law limits liability to $50 in unauthorized charges. On the other hand, if a debit card is lost or stolen and not reported within two days of discovering it the card holder could be responsible for up to $500. If the cardholder fails to report it within 60 days, they could take the entire loss. I was unaware of these stipulations prior to reading "What to Know Before you Spend Cyberdough". The author, Ellen Stark, advises to guard the debit card as closely as actual cash or checks would be guarded.

CyberCash created the CyberCoin service which allows a consumer to use an existing bank account to transfer money to an electronic wallet. The wallet is a graphical software program installed on a personal computer. The wallet supports multiple credit cards including Visa, MasterCard, American Express and Discover. A log is part of the wallet which records all activities. CyberCash offers their services totally free to consumers.

I found through reading an article in the magazine Money, that I am not among the minority of using the debit card. It is estimated that people in 22 million households use a debit card regularly. Experts also predict that 40% of households will shop with a debit card by the year 2000. 23% of people today shop with a debit card. I find this to be a very good thing due to the high expense of the check clearing system. Costs will not only decline for individuals, but hopefully for everyone.

There is also an issue of foreign transactions. The article on the Internet claimed that CyberCash is working towards a solution to support global currency transactions. At this time CyberCash only offers transactions with US dollars and at on-line merchants who have a bank account in the United States.

and regularly use a debit card. I feel Coastal Mart gains customers because of its convenience. I buy gas there and find this method of paying very convenient, especially if I am in a hurry. I also think debit cards are very convenient elsewhere as well

Some common words found in the essay are:
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Approximate Word count = 2389
Approximate Pages = 10 (250 words per page double spaced)